Thinking of changing accountant but only changed in July! I’m being charged £402 per month which includes last year’s and this year’s corporation taxes, VAT, payroll for 1 person, Self assessment, confirmation statement. Struggling to pay it. Turnover around £90-100,000 year. Not sure what to do? Any advise please?
Also, use xero, LMB (paid on top of £402 myself)
Will be £262 from August next year as playing catch up for Corporation tax feb-22-23.
Need advise how to change with only being with them a few months
Turnover is generally irrelevant when it comes to accountancy. The work is the same and all the software does the heavy lifting. Get a new Xero approved accountant ASAP. Easiest way is to go yo Xero and find their list of approved accountants or Google. The rates are generally between £120 to £150.
If you opt to let them do your bookkeeping this Will increase, but it’s straightforward to do yourself and reconcile your own transactions.
Are you in a contract? If not, just get some quotes from other accountants. Payroll is simple enough if you’ve got the time to sort it and you can use something like Brightpay. Confirmation statement is a 5 minute job about £13 per year. Can you tell your accountant you’re struggling to afford their fees and want to cut down on some of their services. Perhaps just use them for your accounts and self assessment/corporation tax etc?
I said I was struggling they said I may be better to go back sole trader due to turnover however when they quoted they wanted £500 to do this then was only £800 per year less so haven’t done it
It sounds like the current accounting fees are becoming a financial strain, especially with your turnover. Since you’re already using Xero and handling about 140 transactions per month, it might be worth exploring more affordable accountants who specialize in small businesses. Before switching, review your contract for any notice periods or fees for early termination. You could also discuss your concerns with your current accountant—they might offer a payment plan or reduced rate. If you decide to change, ensure a smooth handover by getting all necessary documents and up-to-date reports from your current accountant.